UltraTech Cement has announced a fall in pre-tax profits in the financial year to 31 March 2018 (FY2017/18). The Aditya Birla Group company recorded pre-tax profits of INY33.1 billion, a 14.7% fall on the previous year.
The decline in pre-tax profits comes despite a jump in revenues to INR32.3 billion – a 12.8% increase on FY2016/17 – as costs rose by INR3.82 billion.
Power and fuel costs rose substantially from INR4.4 billion in FY2016/17 to INR6.3 billion, while freight and forwarding expenses were also higher at INR7.3 billion, compare to INR5.9 billion the year before.
In 4Q18, the company recorded growth of 31% in volumes.
“The quarter continued to witness increase in input costs attributable to rise in petcoke and coal prices, and the ban on petcoke usage in TPPs,” the company said.
Read the article online at: https://www.worldcement.com/indian-subcontinent/01052018/rising-costs-peg-back-ultratechs-pre-tax-profits/